1

Management Information Systems

ManagIng Information Technology in the EBusiness Enterprise
Fifth Edition

James A. OBrien

Chapter

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1
Foundations
of Information Systems
in Business

Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Management Information Systems

Fifth Edition

Chapter Objectives
Explain why knowledge of information
systems is important for business
professionals and identify five areas of
information systems knowledge they
need.
Give examples to illustrate how Ebusiness, electronic commerce, or
enterprise collaboration systems could
support a firms business processes,
managerial decision making, and
strategies for competitive advantage.

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Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Management Information Systems

Fifth Edition

Chapter Objectives
Provide examples of real world
information systems, including the
people, hardware, software, data, and
network resources that compose them.
Provide examples of several major types of
information systems from your experiences
with business organizations in the real world.
Identify several challenges that a business
manager might face in managing the
successful and ethical development and use of
information technology in a business.

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Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Management Information Systems

Fifth Edition

An IS Framework for Business Professionals

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Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Management Information Systems

Fifth Edition

What is an Information System?

Control
Controlof
of System
System Performance
Performance

Input
Inputof
of
Data
Data
Resources
Resources

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Processing
Processing
Data
Data

Output
Outputof
of
Information
Information
Products
Products

Storage
Storageof
of Data
DataResources
Resources

Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Management Information Systems

Fifth Edition

What is a System?
Environment

Feedback
Signals

Feedback
Signals

Control
Signals

Control by
Management

Control
Signals

Input of
Raw Materials

Manufacturing
Process

Output of
Finished Products

System Boundary

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Other Systems

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James A. OBrien

Management Information Systems

Fifth Edition

Components of an Information System

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James A. OBrien

Management Information Systems

Fifth Edition

Data versus Information

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James A. OBrien

Management Information Systems

Fifth Edition

Attributes of Information Quality

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James A. OBrien

Management Information Systems

Fifth Edition

10

Logical Data Elements

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Name
Field

Payroll
Record

Payroll
File

Personnel
Database

Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Management Information Systems

Fifth Edition

11

Major Roles of Information Systems

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Support of
Strategic
Advantage
Support of
Managerial
Decision Making

Support of
Business Operations

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James A. OBrien

Management Information Systems

Fifth Edition

12

History of the role of Information Systems

1950-1960

1960-1970

Data
Processing

Management
Reporting

Electronic
Data
Processing
- TPS

Management
Information
Systems

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1970-1980
Decision
Support

Decision
Support
Systems
- Ad hoc
Reports

1980-1990

1990-2000

Strategic &
End User

Electronic
Commerce

End User
Computing
Exec Info Sys
Expert Systems
SIS

Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce

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James A. OBrien

Management Information Systems

Fifth Edition

13

The Internetworked -Business

The Internet
Suppliers and Other Business Partners

Company
Boundary

Extranets

Procurement, Distribution, and Logistics

Engineering &
Research

Manufacturing
and
Production

Accounting,
Finance, and
Management

Intranets
Advertising

Sales

Customer Service

Extranets

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Consumer and Business Customers

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James A. OBrien

Management Information Systems

Fifth Edition

14

Types of Information Systems

Information Systems

Operations

Management

Support

Support

Systems

Systems

Transaction

Process

Enterprise

Management

Decision

Executive

Processing

Control

Collaboration

Information

Support

Information

Systems

Systems

Systems

Systems

Systems

Systems

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James A. OBrien

Management Information Systems

Fifth Edition

15

Other Categories of Information Systems

Expert
ExpertSystems
Systems
Knowledge
KnowledgeManagement
Management Systems
Systems

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Functional
FunctionalBusiness
BusinessSystems
Systems
Strategic
StrategicInformation
InformationSystems
Systems
Cross-Functional
Cross-FunctionalInformation
InformationSystems
Systems

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James A. OBrien

Management Information Systems

Fifth Edition

16

The Information Systems Development Process

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James A. OBrien

Management Information Systems

Fifth Edition

17

Management Challenges of the E-Business Enterprise

IS Human Resources
IS Development

IT Infrastructure
IS Performance

Organization Structure
and Culture
User Acceptance

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Business Strategies
Business Processes
Business Needs

Customer Relationships
Business Partners
Suppliers
Business Customers

Ethical Considerations
Potential Risks?
Potential Laws?
Possible Responses?

Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Management Information Systems

Fifth Edition

18

Chapter Summary
Information Systems play a vital role in the
efficient and effective operations of EBusiness, E-Commerce and enterprise
collaboration.
The business professional must know:

Foundations (fundamentals) of IS
Information Technologies
Business Applications
Development Processes; and

Managerial Challenges

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James A. OBrien

Management Information Systems

Fifth Edition

19

Chapter Summary (cont)

A system is a group of interrelated components
working toward the attainment of a common
goal by accepting inputs and producing
outputs in an organized transformation
process.
An information system uses the resources of
people, hardware, software, data, and networks
to perform input, processing, output, storage
and control activities.

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Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Management Information Systems

Fifth Edition

20

Chapter Summary (cont)

IS Resources:

Hardware Resources
Software Resources
People Resources
Data Resources
Network Resources

Products:

Paper Reports
Visual Displays
Multimedia Documents
Electronic Messages
Graphics images
Audio Responses

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Copyright 2002, The McGraw-Hill Companies, Inc. All rig

James A. OBrien

Management Information Systems

Fifth Edition

21

Chapter Summary (cont)

Information systems perform three vital roles in
business firms. They support:
Business processes and operations,
Business decision making; and
Strategic competitive advantage

Major application categories of information

systems include:
Operations Support Systems; and
Management Support Systems

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